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12 Jul 2011 07:00
Caffyns plc ("Caffyns" or "Company")
Strategy update
In line with the Company's stated strategy of developing its core business with premium and premium-volume partners, Caffyns has indicated to Vauxhall Motors Limited ("Vauxhall") that it is unwilling to commit to the high levels of capital required to operate the Company's Vauxhall franchise.
Consequently, Caffyns will not be representing Vauxhall for new car sales from 8 July 2013.
Revenues from the Vauxhall franchise in the year ended 31 March 2011 were £20.0m and the operating profit before interest and central charges was £40,000.
The Company is actively planning to redevelop its freehold facilities in both Ashford and Tunbridge Wells to continue the development of its core business.
The Company will continue its successful programme of inventory reduction as well as focusing on more profitable aspects of its business to improve overall returns.
Commenting, Simon Caffyn, the Chief Executive said:
"Our freehold facilities at Ashford and Tunbridge Wells offer great potential for development having scale, excellent locations and good markets. Already, one of our core partners has supported our plans for redevelopment and investment. Although Vauxhall has a strong product range and solid customer base, the brand no longer fits with our strategy".
12 July 2011
Enquiries:
Simon Caffyn
Chief Executive
Mark Harrison
Finance Director
Telephone: 01323 730201
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